Greif, a global leader and industrial packaging solutions provider, announced today that it has completed its previously announced divestiture of the Consumer Packaging Group (“CPG”) business for $85 million in cash to Graphic Packaging Holding Company.
“Given our industrial focus, we were not the rightful owner of the CPG business. The sale helps us de-lever our balance sheet, optimize our capital allocation plans and refocuses our business on our core industrial franchise and strategic growth priorities in Intermediate Bulk Container production and reconditioning and containerboard integration,” said Pete Watson, Greif’s President and Chief Executive Officer. “I would like to thank our colleagues at CPG for their contributions to Greif during the past year and wish them the very best in the future.”
Proceeds from the sale of CPG will be used toward debt repayment. Greif expects no material impact to its Fiscal 2020 outlook or Fiscal 2022 financial commitments from this sale and reaffirms its expectation of at least $70 million synergies over 36 months from the closing of the Caraustar acquisition.
Greif is a global leader in industrial packaging products and services and is pursuing its vision: In industrial packaging, be the best performing customer service company in the world.